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- Sustainable aquaculture company Seafarms Group (SFG) receives binding commitments to undertake a $92.5 million placement
- The company is aiming to raise up to $150 million to construct stage 1a of its Project Sea Dragon in the Northern Territory
- More than 1.6 billion new shares will be issued to institutional and sophisticated investors at a price of 5.5 cents
- Seafarms will also be undertaking a share purchase plan to raise the remaining $15 million
- Shares in Seafarms are down 26.7 per cent and are trading at 6.3 cents at 12:53 pm AEST
Sustainable aquaculture company Seafarms Group (SFG) has received binding commitments to undertake a $92.5 million placement.
The company entered a trading halt on June 23, stating it is looking to raise up to $105 million to construct stage 1a of its Project Sea Dragon in the Northern Territory.
Once completed, Project Sea Dragon is expected to become one of the largest black tiger prawn operations in the world.
More than 1.6 billion new shares will be issued to institutional and sophisticated investors at a price of 5.5 cents.
The placement was underpinned by Chairman and largest shareholder Ian Trahar who subscribed for $20 million.
He also agreed to convert all loans equating to roughly $15.2 million under the same terms as the placement.
“We are delighted to have successfully completed this raising and for the significant support shown for the development of Project Sea Dragon,” Mr Trahar said.
“We’ll now work with our construction partner Canstruct to commence the initial work packages for this world class aquaculture project.”
Seafarms will also be undertaking a share purchase plan to raise the remaining $15 million.
Shares in Seafarms were down 26.7 per cent, trading at 6.3 cents at 12:53 pm AEST.
